Cryptocurrency news is a fast-moving area of finance that inspires passionate opinions. Some see it as a transformational technology, others fear it’s just a fad. Its volatility can make it a risky investment, but it can also generate substantial returns if your timing is right. The most common uses of cryptocurrency are to buy and sell goods, but some retailers are beginning to accept it as a form of payment. For example, online luxury retailer Bitdial offers Rolex and Patek Philippe watches in exchange for cryptocurrency.
Unlike traditional currencies, which are backed by national governments, cryptocurrencies are decentralized digital assets. They are created and traded on digital networks using a protocol known as blockchain, which records transactions in tamper-proof ledgers. Cryptocurrencies can be transferred between individuals with virtual wallets, bypassing the need for a central authority. They have been used by dissidents in authoritarian countries to raise funds and evade sanctions. They have also been used to conduct unauthorized financial activities, such as money laundering and terrorist financing.
As a result of the growing popularity of cryptocurrencies, regulators have begun to take action. In January 2024, the SEC approved the first set of ETFs that include bitcoin, a step toward bringing cryptocurrencies into the mainstream financial system. But the sector remains unregulated, and many experts believe that it needs to be brought under the umbrella of existing regulations to protect consumers. Jackson: The big gap that exists right now is oversight of the spot market for cryptocurrencies like Bitcoin and Ether. The industry wants to strike while the iron is hot and get something in place before the end of the Congressional term in early 2027.